Jubilant FoodWorks hits new high on good Q4 results; 1:1 bonus

The stock hit new high of Rs 2,668, up 2% on the BSE, bouncing back 5% from its intra-day low after the company reported more than 10-fold jump in net profit at Rs 681 million in Q4FY18.

Shares of Jubilant FoodWorks hit new high of Rs 2,668 per share, up 2% on the BSE, bouncing back 5% from their intra-day low after the company reported more than 10-fold jump in net profit at Rs 681 million in March 2018 quarter (Q4FY18). It had profit of Rs 67 million in a year ago quarter.

Revenue from operations during the quarter under review grew 27% year on year (y-o-y) at Rs 7,798 million against Rs 6,128 million in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 650 bps to 16.4% in Q4FY18 from 9.9% in Q4FY17.

The strategic initiatives undertaken in the past one year such as the launch of All New Domino’s, Every Day Value and sharp focus on Digital sales drove strong growth for the company, leading to a six-year high of 26.5% same store growth (SSG) for Domino’s Pizza in the quarter.

“The strong performance in Q4 FY 18 was driven by the continued success of All New Domino’s product upgrade rolled out in August and the traction of the Every Day Value pricing that provides customers attractive value for money. In addition, strong growth in online sales also contributed to overall growth, with online sales now contributing to 63% of delivery sales,” Jubilant FoodWorks said in a release.

Meanwhile, the board has recommended issue of bonus shares in the ratio 1:1 i.e. issue of 1 bonus share for every 1 equity shares held by the shareholders of the company on record date. The board also recommended dividend of Rs 5 per equity share of Rs 10 each.

At 02:07 pm; the stock was trading 0.5% lower at Rs 2,594, as compared to 0.05% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than seven-fold with a combined 4.12 million shares changed hands on the NSE and BSE so far.

In past one year, the stock outperformed the market by surging 157% against 18% rise in the benchmark index.